The deal will involve the development of a space junk tracking centre in Western Australia.

The company's chief executive Dr Ben Greene says the partnership will provide it with the resources to help get its technology fully operational.

"Our company has spent about $80 million developing the technology to solve the problem and now we face the next phase, which is deploying that technology in enough sites around the world to be able to track enough of the junk to make a difference in terms of forecasting where it will be to avoid collisions," he said.

Dr Greene says the Western Australian tracking centre will massively improve its coverage.

"Presently we only have one tracking centre which is in the ACT at Mount Stromlo and adding a station in Western Australia will give us another facility 3,000 kilometres away which will not be covered by cloud when Canberra is covered by cloud, so we'll actually have a very high probability of having eyes on space all the time now," he explained.

EOS says one of the benefits of the deal with Lockheed Martin is the establishment a global network of space sensors.

Dr Greene says that has not been done yet because of high costs, but these are coming down dramatically.

"The main reason it hasn't been possible before is that the technology was too expensive," he said.

"Yes, the problem is very important and its worth a lot of money to solve the problem, but in the last five or six years we've reduced the solution cost by about a factor of four, which is a very significant cost saving, and now the cost of deploying and operating a significant amount of infrastructure is actually affordable compared to the actuarial calculation of risk."

Dr Greene says the benefit for Lockheed Martin boils down to a faster timetable to implement the service.

"Frankly the problem was too big for any one company to solve, no matter how big they were or, frankly, no matter how good the technology was," he argued.

"By coming together we actually accelerate, I think by a considerable time, the delivery of solutions to the customers."

Space junk problem worsening

EOS says the problem of space junk is rapidly getting worse, and it is only a matter of time until there is a human catastrophe.

"We don't know when the Gravity situation as shown in the movie, when that will happen. I mean there are very serious analyses coming out of the US government saying that it could be within five years, but the mean expectation is it's about 15 years away," Dr Greene said.

"But it still means we have to move quite quickly, and even Lockheed Martin and EOS deploying we'll be bringing a solution to the market within two or three years. That's nip and tuck in terms of time if, in fact, the nearer predictions of the catastrophe scenario are correct."

Dr Greene says space junk is a potentially very expensive problem as well.

"We've got a trillion dollars, that's a thousand billion dollars, invested in space assets and we've got much more than that on the ground dependent in the economy on those assets for communication, navigation, efficient movement of goods and services, bank transfers, finance, taking money from an ATM, virtually everything depends one way or another on some element of that space technology chain," he explained.

"We've got essentially a race against time to deliver the solutions to protect those assets because, while we haven't been watching closely enough, the space debris problem has been escalating to a point where it's not taking out two or three satellites a year, which is not important in the overall scale of things, but if that turns into an avalanche then we lose everything."

EOS shares have risen almost 50 per cent over the past week and were trading at 67 cents by 2:39pm (AEST) on Tuesday.